Petroleum Minister Attributes Q1’s Low Crude Oil Production to Trans-Niger Pipeline Issues
The Minister of State for Petroleum Resources, Sen. Heineken Lokpobiri, has identified problems with the Trans-Niger pipeline and maintenance activities by certain oil companies as the primary reasons for the low crude oil production in the first quarter of the year. Assuring that these issues have been resolved, he anticipates the country’s output to return to 1.7 million barrels of oil per day soon.
Furthermore, the Minister emphasized the government’s commitment to maximizing the utilization of all available wells across Nigeria to bolster revenue generation, meet budgetary needs, and stabilize the foreign exchange market.
Addressing concerns about the shortfall in oil production, Sen. Lokpobiri stated, “The reported shortfall was mainly due to issues on the Trans Niger Pipeline and maintenance activities by some oil companies.”
He added, “I’m pleased to announce that we’ve resolved these issues, and production is expected to return to previous levels very soon. Our oil production, including condensate, which was at approximately 1.7 million barrels per day, will soon be restored.”
Background:
Nigeria’s crude oil production for March dropped to 1.23 million barrels per day, marking the third consecutive month below the budget benchmark of 1.78 million barrels per day, according to OPEC’s monthly oil market report. This decline led to Nigeria being surpassed by Libya as Africa’s largest oil producer.
Insights:
Despite efforts to boost oil production, Nigeria’s output continues to fall short of targets. President Tinubu’s executive orders aimed at attracting investment and enhancing productivity in the oil sector signify the government’s determination to revitalize the industry. However, achieving the ambitious goal of 4 million barrels per day by the end of the decade remains a significant challenge, especially considering Nigeria’s struggle to meet OPEC’s production quotas.
